Buying a home - worst case scenario - what to do?
Hi Help please!
I am a first time home buyer, buying a home with my fiance'. He is selling his home currently on the market for $125K with no contingencies. He owes 20K on his current mortgage. We have 15K cash in the bank to use however on the purchase of a home. The both of us take in 45K per year each (90K). We are approved for a 200K loan through our bank. My credit score is higher 689, his is lower 589. My debt to income ratio is higher; his is lower. The only debt I have is 20K in Student Loans (currently deferred), and 25K car loan (plus small balances on 2 credit cards). He has 20K mortgage and 20K car loan plus 1 bad debt.
Our recent offer on a home we loved was accepted for 169K. We put down a deposit of 1K.
NOW we are in conversation with our mortgage broker and she says best case scenario we sell our home within the next few weeks, put down 20% on the new home and lock in 15 year mortgage w/.366% APR.
WORST CASE--> there are many different scenarios here that I am finding out minute by minute....this is the part I have questions on.
1. If we don't sell house: put down 10K as down payment, finance a mortgage for 30 years at 3.6%, pull our home off the market and rent it out??.
2. Take our a home equity loan to pay for the 20% down payment.
3. Have my fiance' "purchase" my truck to move the loan into his name, off my credit which would bring my debt to income ratio down.
I need some guidance here....what can we do??? Thanks so much. Backing out of the deal is not an option.